TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)
KELOWNA, BC, June 20, 2012 /PRNewswire/ - Diamcor Mining
Inc. (TSXV: DMI) (OTCQX: DMIFF) (the "Company"), is pleased to
announce that the vast majority of the construction and
installation of site infrastructure at the Krone-Endora at Venetia
project (the "Project" or "Krone-Endora") is now completed, and the
Company has thus begun the commissioning of a new 200 ton per hour
modular processing plant installed at the Project. The
commissioning and testing of this purpose built plant will be
completed over the coming weeks, and will include (i) the
processing of the remainder of the concentrate material secured as
part of the acquisition of the Project from DeBeers Consolidated
Mines Limited, and (ii) the processing of new material which has
been recently mined and stockpiled from the K1 area of the
Project. Along with allowing for the testing and
commissioning of the plant, these exercises are aimed at recovering
an initial quantity of rough diamonds suitable for preliminary
sorting by the Company and its strategic alliance partner Tiffany
& Co., and to assist the Company in establishing a new and
current average dollar per carat estimate for the Project's rough
diamonds. Following these exercises the Company plans to
focus on achieving targeted staged monthly operational increases
through a planned move to recommended near-term trial-mining
exercises to provide the Company with near-term production and cash
flow. In conjunction with the planned trial-mining exercises
the Company also plans to complete additional bulk sampling
exercises on new areas of the Project not previously accounted for
in the initial NI 43-101 Technical Report filed by the Company as
part of the acquisition process. These efforts are designed
to support the future filing of an updated NI 43-101 Technical
Report for the Project, and to assist the Company in arriving at
final long-term production targets and decisions for the
Project.
"The completion of the site infrastructure,
and the installation of our new processing plant, are yet another
example of our team's ability to execute on our business plan,"
noted Diamcor CEO Dean Taylor.
"This extensive work was not only completed in a very short
period of time, but also done on budget, allowing the Company to
preserve operating capital for the further advancement of the
Project", added Mr. Taylor.
Site Infrastructure Overview:
The extensive planning, development, and
construction of site infrastructure at Krone-Endora has been
completed over a period of less than 18 months, and has positioned
the Company with the ability to now further advance the development
of the Project. The following is a brief overview of the
various items completed:
- The construction and upgrading of +/- 9-km of primary access
roads to support the long-term needs of the Project, along with the
upgrading of an additional +/- 8km of secondary operational roads
for crew transport
- The clearing of +/- 60km of temporary roads for the deployment
of operational teams to complete the recommended infill and
extended drilling programme
- The completion of the recommended infill and extended drilling
on a total of 558 targets covering an area of approximately 400
hectares, and the subsequent rehabilitation of those areas
following the drilling
- The installation of +/- 4km of high strength, solar powered,
electrical security fencing and gates around entire area chosen for
trial-mining and construction of the plant site
- The clearing and removal of approximately 4,000 truckloads of
material from low-grade quarry areas and the transport of that
material for the construction of the Project's plant site
- The clearing of +/- 5 acres for the construction of the plant
site area and the areas for the fresh water, waste, and settling
dams
- The completion of civil engineering works, construction of a 5m
raised gabion rock wall around plant site, and extensive concrete
work in preparation for the installation of the modular processing
plant, DMS, final recovery units, and associated offices and
workshops
- The design, manufacturing, and installation of a new purpose
built 200 tph modular processing plant, including the bulk material
reduction pans, DMS, final recovery units, and extensive conveyor
structures
- The installation of generator based power units to support the
short-term needs of the Project during construction, trial-mining,
and to serve as standby power backup for the Project for the
long-term
- The procurement and delivery of long-term production related
equipment to the Project
- Installation of double welded plastic one-piece 2mm linings in
all dams, along with the installation of extensive water management
recovery systems and tanks aimed at recovering and reducing overall
water consumption
- The rehabilitation of previous bulk sampling areas not targeted
for mining exercises in the near-term, and the establishment of
test plots for ongoing research and testing of materials and
vegetation for use in ongoing rehabilitation
- Completion of all engineering, regulatory work, and
installation of +/- 14 km of water pipelines to support the
long-term needs of the Project
- The installation of +/- 4km of power lines to support water
infrastructure, along with the ongoing installation of a +/- 8 km
1,000 kVa main power-line to support the long-term needs of the
Project
Processing Plant Overview:
The purpose built modular processing plant
installed at the Project has been designed in conjunction with the
use of a mobile Terex H-6203 power-screening unit in the Project's
quarry area. The H-6203 is the largest in the Terex fleet of
mobile power-screens, and is capable of dry-screening material at a
rate of up to 800 tons per hour. The use of this equipment is
primarily aimed at screening out fine material (approximately 45%),
which lowers operational costs associated with haulage and provides
the additional benefit of reducing overall water consumption.
Screened material is then transported to the Project's new modular
plant where it will be processed through 16' bulk material
reduction pans before entering a Dense Media Separation (DMS)
plant. Primary hands-off final recovery will be completed
using containerized x-ray Flow-Sort machines followed by a
secondary grease system. Processed material will then be
back-hauled to the quarry for immediate rehabilitation to further
streamline operational efficiencies and allow the Company to
minimize the size of the open quarry at all times. The design
of the modular plant is aimed at supporting the Company's initial
targeted ramp of up to 10,000 carats per month within 12
months. Due to the modular nature of the plant, additional
expansion can be performed as needed in a very cost effective way
when desired.
Strategic Tiffany & Co. Alliance:
As announced on March 29,
2011, the Company has established a long-term strategic
alliance and first right of refusal with world famous New York based Tiffany & Co. to purchase
up to 100% of the future production of rough diamonds from the
Krone-Endora at Venetia Project at then current prices to be
determined by the parties on an ongoing basis. In conjunction
with this first right of refusal, Tiffany & Co. also provided
the Company with substantial financing to advance the Project as
quickly as possible. Tiffany & Co. is a publically traded
company which is listed on the New York Stock Exchange under the
symbol TIF. Originally founded in 1837, the Tiffany's name is
now globally recognised as one of the premier luxury jewellery and
specialty retailers in the world. Through Tiffany & Co.
and various other subsidiaries, the company is engaged in product
design, manufacturing, and retailing activities on a global
basis. As of April 30, 2012
Tiffany & Co. operated 251 stores and boutiques in the
Americas, Japan, Asia-Pacific, and Europe and engages in direct selling through
internet, catalog and business gift operations. For
additional information on Tiffany & Co., please visit their
website at www.tiffany.com.
About Krone-Endora at Venetia:
On February 28,
2011, Diamcor successfully acquired the Krone-Endora at
Venetia Project from De Beers Consolidated Mines Limited. The
Project consists of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in
South Africa. De Beers
previously completed various exploration efforts on initial areas
of interest comprised of approximately 307 hectares, a summary of
which was reported in an initial Independent NI 43-101 Technical
Report filed by the Company on July 30,
2009. The deposits which occur on the properties of Krone
and Endora have been identified as a rare, higher-grade "Eluvial"
basal deposit which is covered by a lower-grade upper "Alluvial"
deposit. The deposits are proposed to be the result of the
direct-shift (in respect to the "Eluvial" deposit) and erosion (in
respect to the "Alluvial" deposit) of an estimated combined 1,000 m
(1 km) of material from the higher grounds of the adjacent Venetia
Kimberlite areas. The deposits on Krone-Endora occur in two
layers with an average total depth of less than 15.0 metres from
surface to bedrock, allowing for a very low-cost mining operation
to be employed with the potential for near-term diamond production
from a known high-quality source. Krone-Endora also benefits
from the significant development of infrastructure and services
already in place due to its location directly adjacent to the
Venetia Mine. Since acquiring Krone-Endora the Company has
completed the construction and installation of extensive
infrastructure at the Project, along with the installation of a
purpose built modular processing plant. Commissioning of the
processing plant is now underway.
About Diamcor Mining Inc:
Diamcor Mining Inc. is a fully reporting
publically traded junior diamond mining company which is listed on
the TSX Venture Exchange under the symbol V.DMI, and on the OTC QX
International under the symbol DMIFF. The Company has a
well-established operational and production history in South Africa, and extensive experience
supplying rough diamonds to the world market. Rather than
exposing itself to the high risks and costs associated with
exploration, the Company's focus is on the identification,
acquisition, and operation of unique diamond projects with
near-term production potential such as the Krone-Endora at Venetia
Project. For additional information on Diamcor, please visit
our website at www.diamcormining.com.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Phone: (250) 864-3326
Website: www.diamcormining.com
This press release contains certain
forward-looking statements. While these forward-looking
statements represent our best current judgement, they are subject
to a variety of risks and uncertainties that are beyond the
Company's ability to control or predict and which could cause
actual events or results to differ materially from those
anticipated in such forward-looking statements. Further, the
Company expressly disclaims any obligation to update any forward
looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Diamcor Mining Inc.
